• by Sarah Mahoney  @mahoney_sarah, April 26, 2016

Coach’s comeback is gaining momentum, with the luxury handbag maker announcing sales and profits that beat expectations. And in order to become even more surefooted, it says it is shaking up its corporate structure, replacing its marketing chief. 

David Duplantis, president, global marketing, digital & customer experience, is leaving. And Coach is promoting Andre Cohen to president, North America and global marketing, adding customer experience and digital to his responsibilities. Also gone is Gebhard Rainer, current president and COO, while Todd Kahn rises to president, chief administrative officer and secretary. 

The company says it is on track to make it back into positive sales territory in North American stores by the fourth quarter. The restructuring “will allow us to emerge as a brand-led company with fewer layers, larger spans of responsibility and a consistent global voice across merchandising and marketing,” says CEO Victor Luis, in its release. “In keeping with this goal, we are also making changes to streamline and reinforce our leadership team.”

Those efficiencies, it says, will help it meets its previously announced goal of reaching a 20% operating margin by next year.

Observers like what they’re seeing from Coach, and say the results show that the company’s brand repositioning is working. “The transformation initiatives are consistently yielding in line with guidance despite a tough environment,” writes Dave Weiner, an analyst who follows the stock for Deutsche Bank, in his report on the results. “And brand momentum is improving.”

For the third quarter, sales climbed 11% to hit $1.03 billion, up from $929 million in the same period a year ago. Coach sales in North America rose 1% to $499 million, from $493 million last year. International sales rose 5%.

And net income advanced to $124 million, from $100 million a year ago, including gains from its acquisition of Stuart Weitzman. 

With sales improving in both North America and internationally, “we are delighted with how our plan for the Coach brand continues to unfold,” he says, evolving from “a specialty retailer to a house of modern luxury brands. We are advancing our agenda to successfully connect our history and heritage as America’s original house of leather to the hip, cool Coach of today, bringing our loyalists with us and cultivating new fans along the way. It’s not about being classic, it’s about being an original.”